Daimler AG to re-enter Iran ’s market

The German giant car manufacture Daimler AG plans to reenter the Iranian auto market, Silke Mockert, a spokesperson with the company told Trend August 26.

“We will re-enter the market, considering the persistent sanctions regime and further export control regulations, after the implementation of the nuclear agreement,” Mockert said.

“Against this background, we currently conduct individual transactions,” she added.

The CEO of Iran Khodro Industrial Group (IKCO) Hashem Yekeh Zareh earlier said that the German company will purchase 30 percent of Iranian Diesel Engine Manufacturing's (IDEM) shares to produce autos in the city of Tabriz, adding Mercedes-Benz would sign a 10-year agreement to produce truck and autobus in Iran.

He said that German Daimler AG was Iran 's major partner before sanctions, but left the country, however, this company wants to re-open its office in Tehran during next months.

Iran Khodro may sign a deal with German Daimler AG to produce commercial vehicles and luxury cars as soon as three to four months from now, Yekeh Zareh added.

Meanwhile Mockert refused to make comments on the issue saying as a matter of principle, the company does not comment on contract components or contractual relations.

Iran is one of the biggest countries in the region in term of producing cars.

The 2014 production statistics by the International Organization of Motor Vehicle Manufacturers (OICA) show Iran ’s auto production increased by 46.7 percent in the 12-month period. The figures indicate the Iranian automakers produced 1,090,846 cars and commercial vehicles last year.

Iran's Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh said on July 23 that Iran was looking to move away from state ownership in many sectors, creating joint ventures for auto parts manufacturers with the aim to produce three million vehicles by 2025, of which a third would be exported.     (today.az)